Comments on: 1, 2, 3 Big Studios: Redbox Files Suit Against Warner

By: Fox and Warner Seek to Dismiss Redbox Lawsuits | Inside Redbox

Fox and Warner Seek to Dismiss Redbox Lawsuits | Inside Redbox — Sat, 03 Oct 2009 16:59:38 +0000

[...] Smith on Oct 03, 2009 under news The last two days have seen some major developments in the Redbox vs. studios drama. Both Fox and Warner Brothers have filed motions to dismiss Redbox’s lawsuits against them, [...]

By: “You’re Next!” Studios Tell Netflix | Inside Redbox

“You’re Next!” Studios Tell Netflix | Inside Redbox — Fri, 02 Oct 2009 23:43:57 +0000

[...] major Hollywood studios lately. Universal, Warner Brothers and Fox, while still deeply mired in a messy lawsuit with Redbox, are now starting to put the squeeze on Netflix. The reason is the same: the studios [...]

By: Redbox vs. Blockbuster Express: Battle of the Boxes | Inside Redbox

Redbox vs. Blockbuster Express: Battle of the Boxes | Inside Redbox — Mon, 28 Sep 2009 16:39:30 +0000

[...] Redbox’s legal spats with several movie studios, Camara said: “We’ve sort of made it clear that our belief [...]

By: richmoral

richmoral — Mon, 31 Aug 2009 14:23:31 +0000

What would be weird is if they win against Universal and then lose against a different studio. You know same situation different outcome. I mean you would think it wouldn’t happen most likely. But I’m sure stranger stuff has happened before.

By: Mark

Mark — Fri, 28 Aug 2009 18:24:04 +0000

Yes, the 10K has a lot of information, but the information in Just a guy’s post after the words “if” and “assuming” is not in the 10K, it is assumptions he made in order to support his preconceived conclusions.

I have not had a chance to review Coinstar’s 10Ks and 10Qs, but typically a large public company does not give a detailed breakdown of financial results by division/product. So anyone looking for a statment like “kiosks made $xx profit each” will probably be disappointed. Sometimes better information is in the earnings call.

By: Joey

Joey — Fri, 28 Aug 2009 16:56:02 +0000

But in my opinion Red box can not sustain with the business model the are currently using nor can they remain profitable with the deals they are making. Once again this is only my opinion

By: Joey

Joey — Fri, 28 Aug 2009 16:54:16 +0000

All the information can be found if you type into your search engine- coinstar 10-k SEC filing. I belive they are operating on a profit margine of under 2%

By: Mark

Mark — Fri, 28 Aug 2009 09:12:04 +0000

Wow, your post is written to fool the uninformed into thinking it’s a reasonable factual assessment based on their financials. But it’s just your opinions with zero supporting facts.

You look at Coinstar’s profit, and then simply assume Redbox is not generating any of it and in fact is running at a loss. What is your basis for making this claim? You say “likely”, which indicates it’s just a guess. And then you use that guess to assert Redbox is in panic and heading for bankruptcy. But you made the whole thing up. That’s like my squinting at the sun and using the fact that it no longer looks as bright to justify a prediction the world will end because the sun is burning out!

The Coinstar financials are no doubt complex. They need to amortize the high cost of the kiosks. My guess is you started looking at the financials and found them too difficult for you to figure out, and so gave up but decided to post what you wanted anyway.

By: Just a guy

Just a guy — Fri, 28 Aug 2009 06:16:26 +0000

If you look at Coinstar’s last statement, you end up getting a profit of about $100/Redbox per month (if you make all of the rest of Coinstar’s businesses at break even).

The reality is that the rest of Coinstar’s businesses are likely propping up the Redbox side of the business and the machines are running at a loss.

Which is why Redbox is in such a panic about either having to buy some of their product at retail prices or waiting 28 days to get their product. Because their business model simply does not work and they know it.

Their only hope is to drive enough video stores out of business so that people have no choice but to rent at a Redbox. And that is when you will see the price increase. This is a standard ploy and they have a short window to make it work. Otherwise you will see a lot of Redbox machines getting pulled in the next year or so as Coinstar files Chapter 11.

By: Carolyn Jones

Carolyn Jones — Tue, 25 Aug 2009 13:51:31 +0000

As for them still being in business because they make a profit that is a false assumption. Companies that are not making a profit tend to look for new investors to help prop them up and grow. And if you do loose money then you absolutely expand if your a young company with the investment capital. As a publicly held company most investors are looking for growth. The fact that you are growing allows you to loose money since you claim that the losses are due to cost of expansion.

Moot point however. It looks like Coinstar had a Net Income of 7 million for the second quarter between all entities. Very good during this economic downturn. I was simply concerned by McD seeming reluctance to replace the Redboxes in my area. Could be an oversight or it could be an early indicator of trouble with the partnership. I doubt it, but I it is a nagging question at the back of my mind.